Buy Zcash (ZEC): Is it worth it?
Published: 26 February 2021 by Valentina
Anonymity and privacy are the most interesting features that cryptocurrencies can offer, but there are few that are truly anonymous. Buying Zcash means believing in the importance of these factors, which attract the attention of many investors.
As we will see in this guide, buying Zcash is pretty simple, just follow these 3 steps:
- Register with a regulated CFD Broker, which is preferable to Exchanges (you will discover why later).
- Practice on the Demo account to become familiar with the platform.
- Make the minimum deposit required and start investing seriously.
By following these steps, you can invest in Zcash without paying commissions and in a safe and regulated manner.
In fact, thanks to CFD brokers like eToro, it is possible to buy cryptocurrencies like Zcash, in total safety and avoiding the risks associated with Exchanges. Here are the best platforms available:
Min. Deposit: 50€
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Buy Zcash: What it is and where it started
Zcash was born from the mind of Zooko Wilcox as a derivation of the Bitcoin blockchain on October 28th, 2016.
It was initially known as the Zerocoin protocol, then it was transformed into the Zerocash system and then finally into the Zcash (ZEC). Like Bitcoin, this cryptocurrency is also based on a decentralized blockchain but allows for anonymity for the transaction amounts and the parties involved.
This is the reason for the birth of Zcash: To remain anonymous.
With Bitcoins, if you know someone’s address, you can track their transactions and you can even see the amounts, but with Zcash all information is encrypted.
Bitcoin’s success has paved the way for the emergence of hundreds of new cryptocurrencies, including ZCash. The demand for privacy increased as cryptocurrency users realized that their transactions were easily traceable in the blockchain.
Bitcoin was a pioneer in the open financial system; ZCash tries to maintain this same structure, but with absolute privacy.
Buy Zcash: How it works
Usually cryptocurrencies such as Bitcoin, even if they are apparently anonymous, allow tracking anyway.
This means that with a sufficient number of transactions carried out over time, the public address allows all transactions made to be revealed and therefore makes it possible, with a little investigation, to identify the owner of the address.
ZCash uses a cryptographic tool called zk-SNARKs, which stands for Zero-Knowledge Proofs. This allows two users to make transactions without either party revealing their payment address to the other.
Since the payment addresses registered on the blockchain are not the actual user address but the encrypted codes, it is almost impossible to trace the path of the money to its sender or recipient.
Is buying Zcash worth it?
At this point, what interests investors the most is whether it is convenient to buy Zcash or not.
Looking at the historical graph of Zcash (ZEC), two things can be deduced:
- After the initial price explosion of Zcash, the cryptocurrency has lost value
- At the moment, given its characteristics, it is probably underestimated
Zcash is a very popular cryptocurrency, it is volatile, and it offers truly unique features in the digital currency landscape. Although anonymity is also a problem faced by other cryptocurrencies such as Monero, with Zcash it has probably reached a level that is difficult to overcome.
Investing in cryptocurrencies means believing in a project – an idea – which Zcash has been able to implement very well.
How to buy Zcash
Now let’s get to the practical side of investing: How to buy Zcash?
The easiest way to buy cryptocurrencies is to use Exchanges or CFD brokers.
- The Exchanges are, basically, websites that allow you to exchange cryptocurrencies and buy them through fiat currencies (such as Euro and Dollar). However, they have no regulation and no external control. They do not offer deposit guarantees and unfortunately, they suffer frequent cyber attacks resulting in cryptocurrency theft.
- CFD Brokers, on the other hand, are intermediaries which operate with a regular license, guarantee the deposits, and are required to comply with a series of rules to protect investors. Furthermore, they are not subject to theft because they do not really “own” cryptocurrencies, but only negotiate them through contracts: CFDs.
Here we have summarized the strengths and weaknesses of these two investment methods:
Pros > You “really” buy cryptocurriences
Cons > Commissions to be paid
> No license
> You can only invest upwards
> Serious security concerns
> Slow transactions
Pros > They are safe and licensed
> You can invest both up and down
> There are no commissions
> There is no risk of cryptocurrency theft
> Immediate transactions
Cons > You don’t “really” buy cryptocurriences
In the end, we can deduce that to buy Zcash:
- Exchanges are risky (they have suffered numerous cyber attacks), expensive (there are commissions to pay), and allow you to earn only in the event of a rise in prices (you cannot sell short).
- CFD Brokers are cheap (they don’t charge commissions), they are safe and regulated (they are licensed), and offer the possibility of earning even when prices fall (short selling).
Buy Zcash with the best platforms
Given the convenience of CFD Brokers, we will analyze the best platforms offered by these intermediaries to buy Zcash. It is essential that they possess a regular FCA or CySEC license.
In addition to security, in order to choose a trading platform, it is necessary to evaluate the convenience, usability, and services offered for free.
Once the Broker has been chosen, you can invest in Zcash using CFDs (contracts for difference):
- Buy the Zcash CFDs to profit from the growth in the price of the cryptocurrency
- Sell the Zcash CFDs to profit from the drop in the cryptocurrency price
Once the desired price is reached, the transaction is closed and net profits can be withdrawn or reinvested, without commissions.
Following the analysis carried out by OnlineTradingCourse.net on CFD brokers, it emerged that the best platforms where to buy Zcash safely are those offered by eToro, ForexTB and IQ Option.
eToro: Intuitive platform to buy Zcash
eToro reconciles the security of a reliable Broker with over 7 million active users. It has numerous licenses, including that of FCA for the UK.
The eToro trading platform is among the most intuitive and easy to use. Below you can see the screenshot of the Zcash CFD:
To buy Zcash (or sell it) you need to click on “Invest”, decide whether to buy or sell the cryptocurrency, and how much to invest in the operation.
If you have little experience with online trading or do not have the time to trade “manually”, eToro has the right solution for you: Copy Trading.
This system allows you to invest automatically and to copy the market operations of the best traders in the world, chosen by you on eToro, without additional costs.
To use Copy Trading you need to follow these steps:
- Register on eToro
- In the section “people”, you can choose the traders to copy based on the performance.
- With a click, Copy Trading will copy exactly the same operations of the chosen traders in your account.
- At this point, you will get the same returns as these trading experts (of course, in proportion to your investment), without doing anything else.
Here, you can see some of the eToro Traders that can be copied.
Both Copy Trading as well as traditional trading can also be tested on a free Demo account, without taking real risks.
For more details you can read our full eToro review.
ForexTB: Trading signals to buy Zcash
ForexTB has tried to stand out among online brokers by focusing on supporting and training its users with a series of free services.
The first one is the free Trading Course that was created to help you understand technical analysis and the main trading strategies. It is an ebook considered among the best on the market and can be downloaded for free from the link below:
But theory is not enough to get results, in fact ForexTB sends all its members the free Trading Signals created thanks to the expertise of Trading Central. These operational indications have a 70% success rate and to receive them, just use the official link below:
ForexTB offers the possibility to choose between two trading platforms that meet the needs of any investor:
- The web platform is easy to use and can be entered from any browser without downloading any software.
- Metatrader 4 is more technical and full of professional indicators and meets the needs of the more experienced traders.
Buying Zcash on ForexTB is simple, just select the corresponding CFD, click on Buy or Sell and decide how much to invest in the operation.
This broker has an international authorization issued by the FCA, which regulates and authorizes online brokers in the UK.
IQ Option: Buy Zcash with 10 Euro
IQ Option is so popular, because it allowes traders with very small capital to access the market.
The minimum deposit, which usually varies from 100 to 250 Euros, on IQ Option is only 10 Euros and this allows anyone to buy Zcash or any other cryptocurrency.
On IQ Option, it is possible to buy Zcash (or sell) by investing only a few Euros.
The security of this Broker is guaranteed by the FCA licence, which authorized IQ Option to offer its services in the UK.
Even if the entry threshold is only 10 Euros, it is still possible to practice on a Demo platform, in order to avoid any risk during the practice.
The IQ Option trading platform is among the fastest and most advanced that we can find on the market but at the same time it is very easy to use. Indeed, traders with little experience find it really simple.
Last but not least, IQ Option provides all members with an educational area rich in content and in-depth material, where each trader can enrich his knowledge background for free.
Buy Zcash: Forecast
Zcash (ZEC) is a fast growing cryptocurrency, which currently occupies the 21st position in the crypto market by capitalization: A very good result given its short life.
Predicting the price of cryptocurrencies is as difficult as predicting the stock market, but to get an idea of the future of Zcash, we evaluated the analyzes of the leading cryptocurrency experts and reported them below:
- Crypto Ground predicts that the price of Zcash could reach $ 135 by the end of this year. For the long-term future, it even expects a target of $ 1358 by 2023.
- Wallet Investor believes that the value of Zcash could depreciate and reach around $ 4 by the end of 2020, a very pessimistic and cautious forecast.
- Trading Beasts speculates that Zcash could soon rise as high as $ 60 by the end of 2020.
- Matthew Beck, analyst at Bitcoin Investment Trust, has predicted that the price of Zcash could reach $ 70 by 2020.
- Being Crypto believes that in 5 years ZEC could reach $ 760.
Zcash pros and cons
Among all the cryptocurrencies in circulation, Zcash has remained surprisingly stable throughout the year. Let’s see what are the pros and cons of this digital currency:
- Zcash is an innovative cryptocurrency
- It has created a blockchain that allow total anonymity
- Many large companies are interested in this network
- It is not the only cryptocurrency that aims to solve the privacy problem
- It risks being used for illegal transactions
Zcash is a cryptocurrency developed to overcome Bitcoin’s privacy flaws. Indeed, the ZEC blockchain makes transactions, users, and transferred amounts untraceable.
Anonymity and privacy are highly sought after in the world of cryptocurrencies and investors are well aware that these features enormously increase the potential of Zcash.
To buy Zcash, you can start with a Demo account and then make the minimum deposit required and start investing on the real market.
Here are the official links of the free Demo accounts offered by the best cryptocurrency trading platforms:
- Practice the eToro Demo account for free by clicking here
- Register for free on ForexTB and access the Demo account from this link
- Access the IQ Option Demo account for free with this link
ZEC is a cryptocurrency born from a derivation of the Bitcoin blockchain.
Yes, it is a cryptocurrency with enormous potential because it makes transactions totally anonymous.
The forecasts of the major cryptocurrency analysts are on the upside, for details read our guide.
The platforms offered by the best CFD brokers such as eToro are the most suitable for investing in Zcash without paying commissions.